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Historic $9.63 billion loan to boost US battery production

The joint venture is about to receive more cash than originally hoped - but so much later than anticipated (Image source: Ford.com)
The joint venture is about to receive more cash than originally hoped - but so much later than anticipated (Image source: Ford.com)
In a move to enhance domestic electric vehicle (EV) production, the U.S. Department of Energy has finalized a groundbreaking loan of $9.63 billion to the BlueOval SK joint venture, a collaboration between Ford Motor Company and South Korean battery manufacturer SK On. Marking the largest loan ever allocated from the government's Advanced Technology Vehicles Manufacturing program, the funding will facilitate the construction of three state-of-the-art battery manufacturing plants located in Tennessee and Kentucky.

The loan that Notebookcheck reported on in mid-2023 is only just taking its final shape now. It comes as part of a broader push by the Biden administration to stimulate EV production ahead of the upcoming presidential transition.

  • The loan is aimed at developing more than 120 gigawatt hours of U.S. battery production annually.
  • BlueOval SK has invested over $11 billion already in building the new facilities, with production expected to commence in Kentucky by 2025 and in Tennessee by late 2025.
  • The approval process for the loan apparently involved a lot of scrutiny.

Jigar Shah, head of the DOE Loan Programs office, highlighted the importance of this initiative, emphasizing competitive challenges posed by China in the global manufacturing landscape and underscoring the importance of enhancing domestic production capabilities:

This program is essential to getting people to choose the United States of America

The BlueOval SK joint venture's current goals include building three facilities in mainland America, each spanning 4 million square feet.

In a related effort to boost EV production, the DOE is also planning to provide up to $7.54 billion in cheap funding to Stellantis and Samsung SDI to enable construction of two lithium-ion battery plants in Indiana. This initiative, alongside previous funding agreements including a $2.5 billion loan to General Motors and LG Energy Solution for battery facilities in multiple states.

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> Expert Reviews and News on Laptops, Smartphones and Tech Innovations > News > News Archive > Newsarchive 2024 12 > Historic $9.63 billion loan to boost US battery production
Alexander Frolov, 2024-12-17 (Update: 2025-01-13)